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Monetary Policy Announcement and Stock Returns - Evidence From Long-Term Repo Operations in India

Author

Listed:
  • Radeef Chundakkadan
  • Subash Sasidharan

    (Department of Liberal Arts, Indian Institute of Technology Bhilai, India)

Abstract

This paper investigates the impact of unconventional monetary policy on stock returns using the Reserve Bank of India’s long-term repo operations (LTROs). We provide evidence that firms listed on the Bombay Stock Exchange register higher returns on the days of LTRO announcements. We also find the stock returns of bank-dependent and financially constrained firms to be relatively higher on the days of announcements.

Suggested Citation

  • Radeef Chundakkadan & Subash Sasidharan, 2022. "Monetary Policy Announcement and Stock Returns - Evidence From Long-Term Repo Operations in India," Asian Economics Letters, Asia-Pacific Applied Economics Association, vol. 3(2), pages 1-6.
    • Handle: RePEc:ayb:jrnael:67
    DOI: 2022/06/16
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    References listed on IDEAS

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    Cited by:

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    2. Behera, Harendra & Gunadi, Iman & Rath, Badri Narayan, 2023. "COVID-19 uncertainty, financial markets and monetary policy effects in case of two emerging Asian countries," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 173-189.
    3. Feng, Ying & Wang, Hong & Sha, Yezhou, 2023. "Delamination of information disclosure and stock price synchronicity — Evidence from China’s NEEQ market," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 614-623.

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    More about this item

    Keywords

    covid-19; monetary policy; stock returns;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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